Are You Ready to Roll Standards?
Posted on: December 19, 2012 | By: SuperUser Account | QAD Financials
Companies with a 12/31 year end will typically update their standard costs for their manufactured and purchase parts effective beginning of the year. Changing standard costs have a financial impact on inventory valuation. Because of the potential material impact of a change in inventory valuation, it is important to insure your business process for accumulating and updating standard costs are controlled and repeatable year over year.
If you are a QAD user, you should be using the cost management module for this process. Within the cost management module, you can assemble new standards for the next operating cycle in a simulation cost set. Using this tool, you can roll the cost multiple times with no effect on actual standards. With the simulation, you can fine tune your variable and fixed overhead rates and evaluate the potential impact on inventory valuation prior to the actual change to the standard cost set.
For more information regarding the QAD Simulation Costing tools, contact Andy Vitullo at email@example.com.
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